QUESTION 7 Rebecca has a qualifying home office. The room is 600 square feet and the entire house is 3,000 square feet. Use the following information to determine her allowable home office deduction: REVENUE FROM LEGAL PRACTICE $ 160,500 EXPENSE FROM LEGAL PRACTICE $ 157,000 EXPENSES FROM HOME (100%) HOME MORTGAGE INTEREST $ 10,000 PROPERTY TAXES $ 3,300 HOMEOWNER'S INSURANCE $ 2,000 UTILITIES $ 1,200 DEPRECIATION ON OFFICE PORTION OF HOME $ 800 $3,300 $16,500 $3,500 $4,100 QUESTION 9 In Year 1, CamoCo, Inc. sold some investment land with a tax basis of $2,400,000 in exchange for $1,120,000 cash. This was CamoCo's only asset disposition in Year 1. Before considering this disposition, CamoCo had Year 1 taxable income of $10,000,000. What is CamoCo's Year 1 taxable income after considering this disposition? $10,000,000 $9,997,000 $8,720,000